⁉️How does DCA work?
How does DCA function works in Soybot
Key points
As Soybot is routing through Jupiter, all DCA orders being placed via the Soybot interface are being executed via Jupiter's DCA Creation Process.
When initiating a DCA order, your deposited tokens will be transferred from your wallet to a program owned associated token account (ATA)
Each wallet will be linked to a separated ATA.
For example, you want to DCA 10 $SOL into $RAY, 10 $SOL will be deposited into your SOL vault.
The first order will take place immediately after the DCA position has been created, and the remaining orders will take place regularly at your desired intervals.
CAUTION
To minimize the predictability of your DCA strategy, orders are filled within a randomised padding of +/- 30 seconds.
Order mechanism
A DCA order will be broken into many small orders.
The number of orders depends on the options or iterations you choose. For example, if you choose to DCA into with $900 USDC over 3 days, your DCA order/account will have a total of 3 trades/ transactions of $300 USDC each.
You will have the right to split your order in hourly, daily or weekly interval.
Scenario with example:
If you choose to DCA into $RAY with 10 SOL over 4 days
Your first trade/ transaction to swap from $2.5 SOL for $RAY will take place immediately after DCA order has been confirmed.
Your second trade/ transaction to swap the next $2.5 SOL for $RAY will take place approximately 24 hours later after the initial trade/ transaction.
Your third trade/ transaction to swap $2.5 SOL for $RAY will take place approximately 24 hours after the second order and so on and so forth.
Your fourth or last trade to swap $2.5 SOL for $RAY will take place approximately 24 hours after the second order and so on and so forth.
Automatic Transfer of Purchased Tokens on every order
As an example, say you opt to DCA into RAY with $10 SOL over 4 days, with SOL being the purchase token.
On Day 1, you will receive $2.5 SOL worth of RAY in your wallet automatically. If the price of RAY is $0.01 SOL/RAY, you will receive 2475 RAY (net of fees) in your wallet.
On Day 2, you will receive $2.5 SOL worth of RAY in your wallet. If the price of RAY is $0.02 SOL / RAY, you will receive 1237 RAY (net of fees) in your wallet.
On Day 3, you will receive $2.5 SOL worth of RAY in your wallet. If the price of RAY stay stagnant and remain as $0.02 SOL / RAY, you will receive 1237 RAY (net of fees) in your wallet.
On Day 4, you will receive $2.5 SOL worth of RAY in your wallet. If the price of RAY is $0.025 SOL / RAY, you will receive 990 RAY (net of fees) in your wallet.
Soybot DCA ATA opens the necessary ATA for your wallet when you create a Soybot DCA account. As Soybot is routing through Jupiter Finance, the ATA will be associated with the Jupiter ATA.
However, if you close your purchased token's ATA manually via your wallet interface or any other 3rd-party tool, tokens will not be transferred to you automatically on every order but only at the end of your DCA cycles as a single lump sum amount. This is only applicable to SPL tokens. For SOL: Jupiter takes care to open/close your wrapped account.
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